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Client: Corporate holding company for 13 business entities in VA, NC, and SC that specialize in the concrete industry, with over 850 employees.
Challenge: With an eye on its growth strategy, the company’s executive team sought efficiencies in processes and vendor relationships, while continuing to encourage the independent spirit of its individual entities. The company began a concerted effort to examine options, and then consolidate areas such as payroll vendors and the like. With this process of consolidation came an interest in finding the best practices of the groups and creating a core benefits program with consistent policies related to payroll deduction strategy, wellness programs, communication and more.
The Scott Approach: With our guidance and participation, the organization established a core committee with representatives from each entity, including the company’s CFO, President, Controller, and HR Director. The members became engaged in a way they had not been before and became active contributors to the solution. As a result, the core benefits structure that included plan design, policies, premium incentives, health risk management, and communication was cemented. The carrier was engaged at a higher level than ever before, thus holding a bigger stake in the continued success of the program overall.
As a part of the strategic plan, Scott Benefit Services deployed our proprietary Health Risk Management/Wellness program to address their health risk management needs. This process began with an analysis of the company’s existing health risk management programs. This analysis coupled with medical claims and pharmacy data created a story that was shared with senior-level and key decision makers. This educational process with the leadership led to the desire to embrace additional proactive strategies to stabilize corporate health care costs. Through Scott’s consultation, guidance, and coaching, the organization was able to successfully implement a comprehensive health risk management program to all employees and spouses.
Financial Impacts:
- First plan year, actual claims were 15.3% below expected claims
- Second plan year, with SHARP program, claims were 11.2% below expected claims
- Third plan year, actual claims were 15% below expected claims
- Medical claims have been stabilized. Before the comprehensive health risk management program was implemented, the organization saw an average trend of 20%. The PEPM trend for the first 3 years after implementation was, consecutively, 3.3% followed by 1.6% and last year, 4.0%
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